Investment firm Invesco on Monday asked shareholders of Zee to join it in asking why the founding family, which holds around 4 per cent stake, should benefit at the expense of the investors who hold the remaining 96 percent.
Raising questions over the recently announced merger of Zee with Sony Pictures, Invesco, in an open letter to Zee shareholders said the announcement to "gift additional 2 percent equity to the founding family via a non-compete that seems entirely unjustified, while also providing a pathway for the founding family to raise its stake from 4 percent to 20 percent via methods...remain wholly opaque".
The investment firm also expressed its resolve to pursue extraordinary general meeting (EGM) to "hold the board and management accountable and effect necessary change at Zee".
Invesco, which along with OFI Global China Fund LLC holds a 17.88 percent stake in ZEEL, has been pressing for an EGM to discuss various issues, including the removal of Managing Director Punit Goenka.
Promoter Subasha Chandra's family presently holds around 4 percent stake in Zee Entertainment Enterprises Ltd (ZEEL) and as per the merger announced with the Sony Picture Networks India, it can go up to 20 per cent.
Goenka would also lead the merged entity as Managing Director for five years.
